RENTON,
Wash., Aug. 8, 2022 /PRNewswire/ -- Radiant
Logistics, Inc. (the "Company") (NYSE American: RLGT) today
announced that it has secured a new $200.0
million syndicated secured revolving credit facility (the
"Secured Facility") to replace its existing $150.0 million revolving facility. The Secured
Facility enhances the Company's financial flexibility, providing
increased capacity to fund future acquisitions, capital
expenditures or for other corporate purposes, including, if
warranted at the time, the repurchase of the Company's common
stock.
BofA Securities, Inc. acted as the book runner and joint lead
arranger for the syndicated credit facility. Bank of Montreal acted as lender, joint lead arranger,
and syndication agent. MUFG Union Bank, N.A. acted as lender and
co-documentation agent. Keybank National Association acted as
lender and co-documentation agent. Bank of America, N.A., and
Washington Federal Bank, National Association also acted as
lenders. Bank of America, N.A. will also serve as administrative
agent.
Under the terms of the new Secured Facility, the Company may
borrow up to $200 million, subject to
compliance with customary and standard financial coverage covenants
and ratios. Included within the Secured facility is an accordion
feature for an additional $75 million
to support future acquisition opportunities. Borrowings under the
Secured Facility accrue interest at either the Lenders' base rate
plus 0.50% or SOFR plus 1.40%, and can be subsequently adjusted
based on the Company's consolidated net leverage ratio, at either
the Lenders' base rate plus 0.50% to 1.50% or SOFR plus 1.40% to
2.40%.
The Secured Facility carries a five year term and is secured by
accounts receivable and other assets of the Company and its
subsidiaries. For general borrowings under the Secured Facility,
the Company is subject to a maximum consolidated net leverage ratio
of 3.0x and a minimum consolidated interest coverage ratio of
1.0x. Additional minimum availability requirements and
financial covenants apply in the event the Company seeks to use
advances under the Secured Facility to pursue acquisitions or
repurchase its common stock. Under the terms of the Secured
Facility, as of March 31, 2022, the
Company had a consolidated net leverage ratio of 1.0x and a
consolidated interest coverage ratio of 24.4x.
Concurrent with entering into new Secured Facility, the Company
also amended the term loans held by its Canadian lender, Fiera
Private Debt Funds IV and V (formerly known as Integrated Private
Debt Funds IV and V), to make the financial and other covenants
therein consistent with those contained in the new Secured
Facility. The security interest securing such term loans remain on
a parity basis with those assets securing the new Secured
Facility.
"We are very pleased to announce our new $200 million Secured Facility and appreciate and
the strong support and confidence of our banking group," said
Bohn Crain, Founder and CEO of the
Company. "The new Secured Facility provides us access to additional
low-cost capital and greater financial flexibility as we look to
maximize long term shareholder value through a combination of
organic growth and strategic acquisitions as well as opportunities
to buyback of our common stock."
Crain Continued: "We remain encouraged by our continued strong
financial performance and the fact that we have now reported a
record $69.5 million in adjusted
EBITDA on $1.3 billion in revenues
for the trailing twelve months ended March
31, 2022. It is also worth noting that we delivered these
results while maintaining very low leverage on our balance sheet
and believe we are very well positioned with ready access to
capital to begin our push to the next billion dollar
milestone."
About Radiant Logistics, Inc.
Radiant Logistics, Inc. (www.radiantdelivers.com) is a
third-party logistics and multimodal transportation services
company delivering advanced supply chain solutions through a
network of company-owned and strategic operating partner locations
across North America. Through its
comprehensive service offerings, the Company provides domestic and
international freight forwarding services, truck and rail brokerage
services and other value-added supply chain management services,
including customs brokerage, order fulfillment, inventory
management and warehousing to a diversified account base including
manufacturers, distributors and retailers using a network of
independent carriers and international agents positioned
strategically around the world.
This announcement contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Actual
results may differ significantly from management's expectations.
These forward-looking statements involve risks and uncertainties
that include, among others, risks related to: trends in the
domestic and global economy; our ability to attract new and retain
existing agency relationships; acquisitions and integration of
acquired entities; availability of capital to support our
acquisition strategy; our ability to comply with financial
covenants under our outstanding indebtedness; our ability to
maintain and improve back office infrastructure and transportation
and accounting information systems in a manner sufficient to
service our revenues and network of operating
locations; our ability to maintain and grow our
revenues and operating margins in a manner consistent with recent
operating results and trends; our ability to maintain positive
relationships with our third-party transportation providers,
suppliers and customers; outcomes of legal proceedings;
competition; management of growth; potential fluctuations in
operating results; and government regulation. More information
about factors that potentially could affect our financial results
is included Radiant Logistics, Inc.'s filings with the Securities
and Exchange Commission, including its most recent Annual Report on
Form 10-K and subsequent filings.
The use of proceeds under the Secured Facility described
above reflect possible uses and are not guarantees of how the
proceeds will be used, if at all. Any use of proceeds by the
Company will be subject to, among other things, then applicable:
industry conditions, competitive environment, operational
performance, financial covenants within any outstanding
indebtedness, contractual restrictions, and regulatory
requirements.
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SOURCE Radiant Logistics, Inc.